STATE LEVEL BANKERS’ COMMITTEE
KARNATAKA
AGENDA NOTES OF 128th MEETING
DATE
:
WEDNESDAY, the 6th AUGUST 2014
TIME
:
11.00 A.M.
VENUE :
CONFERENCE HALL,
III FLOOR, VIDHANA SOUDHA
BANGALORE – 560 001
CONVENOR
STATE LEVEL BANKERS' COMMITTEE-KARNATAKA
128th MEETING::: BANKING STATISTICS
AMOUNT `. IN CRORES
S.No. Particulars
Jun-12
Jun-13
Jun-14
Variation Y-o-Y
Amount %ge
69430
15.08
61507
18.14
1 Deposits
2 Advances
403153
298958
460344
338986
529774
400493
3 Credit-Deposit Ratio
4 Total PSA
%ge to Total Advances
74.15
120654
40.36
73.64
136618
40.30
75.60
159807
39.90
1.96
23189
- 0.40
16.97
52387
47870
57204
9334
19.50
17.52
14.12
14.28
0.16
6 Agricultural Advances
56706
67101
77619
10518
%age of Agricultural
Advances to Total Adv.
7 Weaker Section Advances
%age of WS Advances to
Total Advances
8 Advances to SCs/STs
%age of SC/ST Adv to Total
Advances
18.97
19.79
19.38
-0.41
37148
12.43
49641
14.64
56229
14.04
6588
- 0.60
13.27
8432
2.82
9594
2.83
9708
2.42
114
-0.41
1.19
9 Advances to Women
%ge to Total Advances
23915
8
27395
8.08
31150
7.78
3755
-0.30
13.71
10 Advances to Minorities
13505
14296
17043
2747
19.22
%ge to Total Priority Sector
Advances
12 Branch Net work [in Nos.]
11.19
10.46
10.66
0.20
2894
3151
3598
447
[ii] Semi-Urban
1857
2015
2236
221
[iii] Urban
1662
1750
1860
110
[iv] Metro/PT
1519
1641
1822
181
Total Branches
7932
8557
9516
959
5 Advances to MSME
%ge to Total Advances
[i]
Rural
15.67
2
STATE LEVEL BANKERS’ COMMITTEE : KARNATAKA
Convenor – SYNDICATE BANK : CORPORATE OFFICE : BANGALORE
AGENDA NOTES FOR 128TH MEETING OF SLBC
& BANKING STATISTICS PERTAINING TO JUNE 2014
AGENDA 1.0 CONFIRMATION OF THE MINUTES OF 127TH SLBC MEETING
The Minutes of 127th SLBC Meeting held on 18.06.2014 were circulated vide letter No.
328/2014/2944/SLBC/F.101-127 dated 30.06.2014. The Minutes may be approved as no
suggestions for amendments were received.
AGENDA 1.1 – IMPLEMENTATION OF COMPREHENSIVE FINANCIAL INCLUSION
(CFI) / SAMPOORNA VITTIYA SAMAVESHAN (SVS)
The DFS: MoF: GoI has given the detailed guidelines for implementation of Comprehensive
Financial Inclusion (CFI) vide their letter F.No.1/9/2014-FI dated 15.7.2014.
The Financial Inclusion has been one of the priority areas for the Govt. This is mainly
ensuring access to formal financial sector of people in rural and urban areas particularly in
the vulnerable groups such as weaker sections and low income groups. The Govt has
decided at the level of Hon’ble Prime Minister to give a new thrust to this programme by
relaunching it with focus on households on 15th August 2014. The purpose is to ensure that
one bank account for households is opened within one year time frame all over the country.
The success of such a comprehensive and wide spread scheme is largely dependent on the
active involvement of State Govt and its implementation at the ground level.
The Programme will be launched by the Hon’ble Prime Minister in Delhi on 15th August
2014. The role of State Govt is very critical in the implementation of the Plan. NABARD and
Banks will support the State Govt in doing this.
The entire programme is proposed to be implemented in a Mission mode. The mission at
the Central level shall be headed by the Hon’ble Union Finance Minister with Minister of
Communications, Minister of Rural Development, Secretary (Financial Services), Governor:
RBI, Secretary (Telecom), Secretary (Rural Development) & Chairman: IBA as members.
GoI vide their letter D.O.No.1/9/2014-FI dated 17.7.2014 addressed to all the State
Governments has communicated the guidelines for effective implementation of the Scheme
as per the timelines and sought their support.
3
Learnings from the earlier campaign
 The efforts need to be converged so as to cover the various aspects of
Comprehensive Financial Inclusion.
 Focused only on the supply side by providing banking outlets in villages of population
greater than 2000 but the entire geography could not be covered.
 The target was for coverage of villages and not of the households
 The deposit accounts so opened under the campaign had very limited number or no
transactions.
 The task of credit counseling and Financial Literacy did not go hand in hand with the
campaign.
The gist of draft guidelines of the scheme are furnished below:
The Comprehensive Financial Inclusion under the Mission Mode envisages provision of
affordable financial services to all citizens within a reasonable distance. It comprises of the
following six pillars:
1) Action Points in Pillar 1:
Mapping the entire country with Sub Service Areas (SSA) – 1,90,000 SSAs (1000 to
1500 households).

Allocation of SSAs to different Banks.

Coverage of estimated 50,000 new SSAs with Bank Branches / BCs.

Web portal to be created for online progress monitoring and review

New Small Banks & Payment Banks to be opened (draft guidelines issued)
2) Action Points in Pillar 2 :
Opening of Bank Accounts in Camp Mode both in village level and urban area, use of
e-KYC.

Reactivation of Dormant A/cs

RuPay Debit Card to be provided to all account holders (with accident insurance
coverage of Rs 1.00 lac)

Use of Basic Mobile Phones to facilitate payments and transfer of money through
Banks.

OD facility upto Rs 5000/- per live account after 12 months of savings / credit history.
3) Action Points in Pillar 3 & 4 Financial Literacy & Credit Guarantee Fund:
Financial Literacy and Credit Counselling Centres (FLCCs) to be activated at the
rural branches of banks.
4

Revamping and expansion of FLCs upto the block level to increase the scope.

Effective use of technology for training through video conferencing.

Creation of Credit Guarantee Fund.
Action Points for Pillar 5&6: Micro-insurance and Unorganized Sector Pension

Life and non-life micro-insurance policies up to Rs. 50,000 and government schemes
like AABY and RSBY to be promoted

Insurance Sector Network of 5350 micro-offices, 5849 branches, 30100 agents

To promote unorganized sector
pension under
National Pension System
(Swavalamban)
Strategy for achievement of Objectives :
In order to achieve the above objectives, a broad collaborative strategy with all stake holders
is proposed. It is proposed to encourage Public-Private partnerships. Moreover interDepartment convergence and synergies are proposed to be encouraged. The existing
national infrastructure of post offices if they agree to become BCs of banks or are able to
offer debit cards from post offices and the proposed setting up of payment banks would be
optimally utilized to deliver the results. Department of Posts would be requested to utilize the
services of Post offices in rural areas as Business correspondent of Banks.
The strategy is to take forward the Business Correspondent model for expansion of banking
services by modifying it to ensure both operational flexibility and viability of the BC Agents
(BCAs). Convergence with the National Rural Livelihood Mission (NRLM) in rural areas and
National Urban Livelihood Mission (NULM) in urban areas would be sought for in covering
each household with bank accounts. The expansion plans of the Department of Telecom to
provide telecom connectivity in difficult areas would be effectively utilized for the provision of
banking facilities in these areas. Department of Telecom has been requested to ensure that
problems of poor and no connectivity are resolved. They have estimated that of the 5.93 lakh
inhabited villages in the country (2011 census) only about 50,000 villages are not covered
with Telecom connectivity.
The roles to be played by the stakeholders in implementation is furnished below:
Role of Department of Financial Services:

Overall ownership of the Mission Mode Project on Financial Inclusion

Overall Monitoring and Implementation of the Mission
5
Role of other Central Government Departments:

In order to achieve the complete financial inclusion and transfer of social benefits in
the accounts of the beneficiaries, the concerned Departments of Central Government
would coordinate with the stake holders.

Presently, 26 centrally Social benefits scheme under DBT are sponsored by eight
Departments of the Central Government as under:
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
M/o Social Justice & Empowerment
M/o Human Resources Development, D/o Higher Education
M/o Human Resources Development, D/o School Education & Literacy
M/o Tribal Affairs
M/o Minority Affairs
M/o Women and Child Development
M/o Health & Family Welfare
M/o Labour and Employment

MGNREGS is sponsored by Ministry of Rural Development (MoRD, GoI).

Departments like Department of Posts for using the rural post offices, Department of
Telecommunications for telecom connectivity, Ministry of Information & Broadcasting
and DAVP to assist in media campaign, DEITY in development of logistic support for
monitoring like creation of portal for data updating, development of electronic
reporting system, MoRD for convergence with NRLM, HUPA for convergence with
NULM etc.
Role of RBI:

To align their directions to the Banks on Financial inclusion with the Mission mode

FIF fund allocation support

Depositor Education and Awareness Fund scheme 2014 support

To guide and support Banks in Financial Literacy Campaign and revamping and
expansion of FLCCs upto the Block level
Role of IBA:

Coordination in Financial Inclusion Effort with all Banks

Key monitoring role in Financial Literacy campaign

Coordination in publicity and campaign

Coordination in centralised handling of customers grievances / issues through Toll
free numbers in coordination with Banks

A dedicated Desk to be set up for monitoring of implementation of FI. The desk will
have a call centres with Toll free numbers to be activated by 15/08/2014
6
Role of NABARD:

Coordination in publicity and campaign

Monitoring of
Implementation of Financial Inclusion in respect of organisations
working under NABARD

Allocation of funds from Financial Inclusion Fund (FIF)
Role of State Governments:

Appointment of Mission Director at State level

Monitoring of financial inclusion campaign in coordination with SLBC & all the stake
holders

Direct Benefit Transfer of the State schemes in the bank accounts of the
beneficiaries
Role of SLBC:

SLBC Convenor GM to act as Secretary to state implementation committee

Coordination with all the Banks for Financial Inclusion Activity

Monitoring and follow up of different activities of Financial inclusion
Role of District Administration:

Key role in implementation of FI in the districts

District Collector (DC) to act as chairman of District level implementation committee
Role of Lead District Manager:

Lead District Manager (LDM) to act as Secretary to the District Implementation
Committee

LDM to coordinate with all the Banks in FI implementation in the District
Role of Local Bodies:

Representatives of local bodies (panchayats in rural areas and municipalities in
urban areas) to assist in implementation of FI in various ways like in organising
camps in opening of accounts, identification of persons for opening of account , in
financial literacy campaign etc.
National Payment Corporation of India (NPCI):

Coordination and necessary guidance and supports to banks for in providing and
proper operations of RuPay cards
7

To facilitate Interoperability among BCs

Necessary supports to Banks in making available USSD based mobile banking with
low end mobile phones so that
customer can avail basic banking services like
deposit, withdrawal, fund transfer, balance enquiry etc across the banks. This
product may be enabled at BC outlets also.
Administrative Structure for Monitoring:
o Central Level:
Headed by
Other members
Frequency
monitoring
Mission Head
Finance Minister
Minister of Communications, Quarterly
Minister of Rural Development,
Secretary(FS), Governor RBI,
Secretary(Telecom),
Secretary(RD), Chairman IBA
Executive
Committee
Secretary(FS)
Deputy Governor(RBI), DG Monthly
NIC, CEO IBA, CMD BSNL,
CMDs of Banks, Chairman
NABARD,CEO NPCI,
Mission Director
Joint Secretary(FI)
Nodal Officers of banks, Weekly/
NABARD, NPCI, BSNL
Fortnightly

Director (FI) would be Additional Mission Director.
o State Level:
Headed by
Other members
State
Level Preferably
Mission
Implementation
Director,
NRLM
to
Committee
achieve convergence with
NRLM
or
Principal
Secretary(Finance)

Frequency
monitoring
of
of
Heads of Major Monthly
Banks,
Regional
Heads of RBI and
NABARD,
Insurance
Companies etc.
SLBC Convenor Bank General Manager in the State capital would be the Secretary
to the State Implementation Committee.
8
o
District Level:
Headed by
District Level Implementation District
Committee
collector


Other members
Frequency
monitoring
of
Senior most officers of banks Fortnightly
in the district and NABARD,
NRLM members, Insurance
Companies , officers of district
administration
and
Local
Bodies
Lead District Manager (LDM) to act as Secretary to the implementation committee.
The committee to meet every fortnight. The frequency could be even higher in the
initial stage till creation of the infrastructure. Presence of DC would be necessary in
at least in one of the two consecutive meetings.
Present Status in our State : Under Financial Inclusion, Bank-wise detail of
villages/SSAs/Households allotted and covered are as follows.
Sl.
No.
Particulars
No. allotted
No. covered
1)
Villages
29041
17806
2)
SSAs
7646
5588
3)
Wards
4559
3953
The District-wise & Bank-wise particulars are furnished in Annexure-A-3, A-4, A-5 & A-6.
Coverage of BCAs in tune with DFS targets (Phase-wise) are furnished in Annexure A-7 &
A-8.
A sensitization workshop for LDMs was held on 28th July 2014 in order to have a threadbare
discussion and also to work out strategy for effective implementation of the Plan.
The House may deliberate and work out strategy for smooth implementation of the scheme.
AGENDA 2
FOLLOW-UP ACTION ON THE DECISIONS TAKEN DURING THE
PREVIOUS SLBC MEETING
Agenda 2.1 : Investment of surplus funds of PSEs in Banks
In the last meeting, it was informed that the Department of Public Sector Enterprises had
issued a Circular bearing the No.DPE.30.ARU.2010 dated 19.6.2012 detailing the guidelines
on investment of surplus funds by PSEs in Commercial Banks / RRBs.
The Circular
envisages that PSEs need to park their surplus funds in scheduled Commercial Banks /
RRBs who fulfill the following financial indicators.
9
a) Net worth of ` 500 crore (For RRBs ` 100 crore)
b) Profitability track record for the last 3 years
c) Capital Adequacy Ratio of minimum 10%
d) Net NPA level less than 2%
e) Participation in the developmental programme of Govt.
PKGB informed that the Urban Development Dept., GoK had advised Urban Local Bodies
and their District Offices to keep the surplus funds only in Nationalised Banks. SLBC had
requested the Dept to amend / revise NPA stipulation to 8% instead of the present 2% so as
to facilitate PSEs to park their surplus funds in the Banks including RRBs who actually
participate in all developmental programmes partnering with State administration. Further,
SLBC had also forwarded the joint memorandum submitted by Chairmen of all the three
RRBs to the Chief Secretary, GoK requesting for early favourable decision. The ACS & DC
had assured in the last meeting to look into the matter and do the needful.
Agenda 2.2: SCHEME FOR IMPROVING PRODUCTIVITY AND FARM INCOME OF
ARECANUT BASED FARMING SYSTEM IN KARNATAKA
Ministry of Finance, Department of Financial Services, Government of India had vide their
letter No.F.10/ 03/ 2010-AC dated 13th January 2012 had advised NABARD to implement
the relief measures to be given to the Areca growers as per the recommendations of
Dr. Gorak Singh Committee Report with certain modifications. As such, the scheme is being
implemented by all the Banks.
Taking into consideration the plight of Areca growers, the Govt. of Karnataka had convened
a meeting of Farmers / Ministers / MLAs of Areca affected districts on 15.7.2014 under the
Chairmanship of Hon’ble Speaker, Karnataka in order to discuss on waiver of loans to areca
growers affected by yellow disease and also prevention of suicides of farmers in such
affected Districts. In the meeting, the Hon’ble Speaker has informed that the Govt is to take
decision with regard to implementation of Dr Gorakh Singh Committee Report and take up
the matter with Govt. of India. The representatives of farmers informed that the farmers
have filed the case in Supreme Court of India in this regard and the same has been admitted
by the Court vide SLP No.15158/2013 dated 19.7.2013 in the matter of Sachin Meega Vs
Union of India & Others.
They also complained that some Banks are using unethical
measures for recovery of loans. In this connection, the Hon’ble Speaker requested the
Bankers not to go for cohersive / unethical recovery measures till the decision is taken in this
regard by the Govt.
10
SLBC has advised all the Banks to follow the extant RBI guidelines with regard to providing
relief measures to farmers affected by natural calamities and not to adhere to unethical
recovery measures.
As per the information gathered, notices were issued in duplicate to 51694 loanees and
51602 term loans were rescheduled involving ` 179.53 crore. The amount of penal interest
waived was ` 6.39 crore. As many as 4680 crop loan account with an aggregate amount of `
31.63 crore was converted into term loans. 980 fresh loans were issued involving an amount
of ` 9.60 crore.
AGENDA 2.3 : Special Package for Pomegranate & Grape Growers
Consequent upon the receipt of recommendations of Core Committee of SLBC, the GoK has
constituted Inter-Departmental Committee under the Chairmanship of Additional Chief
Secretary and Dev. Commissioner to evolve suitable package. The Committee met on
22.01.2014, 10.02.2014, 24.02.2014 and 03.03.2014 and deliberated threadbare on the
proposed package.
Earlier, SLBC had collected information on loans outstanding as of Sept 2013 from the
Banks for the entire State. Subsequently, the Dept of Horticulture was advised to ascertain
the affected districts and determine the crisis period. Accordingly, the Dept of Horticulture
has informed that:
(a) The following Districts are affected under Pomegranate Crop (Crisis period 1.4.2004 to
31.3.2009) :
(1) Koppal (2) Raichur (3) Bagalkot (4) Bijapur (5) Belgaum (6) Bellary (7) Gulbarga
(8) Yadgir (9) Bidar (10) Gadag (11) Davanagere (12) Chitradurga (13) Tumkur
(14) Chickballapur
(b) The following districts are affected under Grape (Crisis period April 2004 to Dec. 2012):
(1) Bangalore (Rural) (2) Bangalore (Urban) (3) Bijapur (4) Bagalkot (5) Belgaum
(6) Bellary (7) Koppal (8) Gadag (9) Bidar (10) Gulbarga (11) Yadgir
The above list indicates that Bijapur, Bagalkot, Belgaum, Bellary, Gadag, Bidar, Gulbarga,
Yadgir & Koppal are coming under both the crops.
11
The Dept. of Horticulture had supplied District-wise details of affected farmers to the
respective LDMs for onward circulation to the member banks to find out whether the affected
farmers have availed loans from the banks.
The consolidated data (provisional) gathered from concerned LDMs (Crop wise / Term wise)
are furnished below:
(Amt ` in Lakh)
Sl.
No.
Name of the Crop
1 Grape Loans under
Crop- Simple Interest
@9%
Original
Principal
Amount
Simple Interest Overdue / Penal
@ 9% & 10.50% & Compounded Regular Accounts
since beginning Interest charged
No. of
No. of
No. of
No. of
Amount
Amount
Amount
Amount
A/cs
A/cs
A/cs
A/cs
8024 25021.92 8024 19227.60 7949 4139.45
75
193.13
2 Grape Loans under
Term- Simple Interest
@10.50%
8032 26977.64
8032 20450.07
7754 5775.70
278
537.81
3 Pomegranate Loans
Crop- Simple Interest
@ 9%
3079 4553.81
3079 2094.52
2882
617.10
197
224.49
4 Pomegranate Loans
Term- Simple Interest
@ 10.50%
4201 13193.90
4130 7270.89
3902 6386.39
228
789.23
23336 69747.27 23265 49043.08 22487 16918.64
778
1744.66
5 Total
As advised by the Chairperson, to explore the possibility of improving the sacrifice from
Bankers’ side (apart from penal / overdue interest), SLBC had convened the second Core
Committee meeting on 17.2.2014 and after threadbare deliberations, the Committee
informed that Banks cannot levy below Base Rate as per the extant guidelines (majority of
the Banks are having 10.25% as base rate at present).
The Chairman suggested the Dept. of Horticulture to put up a comprehensive note to take up
the issue with Govt of India and RBI for issuing necessary guidelines to Banks in the State
for this special package.
The Dept. of Horticulture, GoK vide their letter No.DH/Addl.DH/Fru/AHO-2/42/2013-14 dated
25.6.2014 has submitted the proposal for providing relief package for Pomegranate & Grape
growers of Karnataka for approval of SLBC. The details of proposal are furnished in the
Annexure-A-1.
A meeting of Bankers’ implementing the scheme was convened on
25.8.2014 to discuss about the proposal given by the Horticulture Dept. GoK. In the meeting
it was decided that all the Bankers to confirm the correctness of the data furnished by them
12
before 2nd August 2014 and also convey their consent for sharing the financial burden in
respect of the relief package, in the SLBC meeting as required by GoK.
The House may deliberate on the issue.
2.4 Aadhaar-linked LPG Subsidy scheme: The implementation of the scheme
commenced from 1.6.2013 in Tumkur and Mysore Districts in the first phase.
In the
subsequent phases, another 23 Districts have been covered. The guidelines and action
points received from RBI / DFS, MoF, GoI were circulated to the concerned Banks / LDMs
from time to time.
As per the information gathered, there are totally 691 Distributors covering 87,89,700 LPG
consumers in the State. Out of which, 30,89,822 have been seeded with Aadhaar numbers
comprising 35.15%. The Bank Aadhaar seeding is done to 22,35,906 a/cs forming 25.44%
total number of LPG consumers.
The District-wise progress as on 21.07.2014 is furnished in Annexure-A-2
2.5: Direct Benefit Transfer Scheme (DBT) in Tumkur, Mysore & Dharwad districts
The Govt. of India had introduced Direct Benefit Transfer into the Bank account of the
beneficiaries under various welfare schemes w.e.f 1.1.2013. In the State, Tumkur, Mysore
and Dharwad districts have been selected for DBT in the first phase.
The list of 26 schemes of Central Sector / Centrally Sponsored Schemes presently identified
for Direct Cash Transfer had been circulated to all Banks.
Details of Accounts opened/Aadhar Number seeded in the three Districts as on
30.06.2014 are furnished below Sl.
No.
District
1.
2.
3.
Mysore
Tumkur
Dharwad
Total
No.of
No.
of Data
schemes Beneficiaries recd.
14
14
15
XXXX
33303
31021
26926
91250
33303
31021
24900
89224
A/cs
opened
33303
31021
24900
89224
Debit
Aadhaar Mapping
Cards seeded with
issued
NPCI
30991
33303
33303
26392
27857
27857
9831
17067
17067
67214
78227
78227
All the participating banks are requested to take steps for expediting seeding Aadhaar into
Bank accounts for all eligible beneficiaries in Tumkur & Dharwad districts and furnish the
progress report to respective LDMs.
MAPPING OF GRAM PANCHAYATS FOR COVERAGE THROUGH BRANCH/ BCA/ CSCSUB SERVICE AREA APPROACH
13
The list of Gram Panchayat and Sub Service Areas identified (district-wise) and BCAs
appointed are furnished in the Annexure-A-3 & A-4 of Agenda No.1.1.
There are 7646 SSAs identified by LDMs in respect of 5630 GPs. Out of this, there are 2323
SSAs covered by existing Bank Branches, 3265 SSAs covered by existing functional BCAs
and 2058 SSAs are proposed to be covered.
As per DFS: MoF: GoI guidelines, LDMs are advised to enter SSA details into the web-portal
created by DFS immediately and further update the status of SSA in the Web portal of DFS
as and when a BCA services provided / new Bank Branch opened.
Banks are requested to appoint / engage BCAs, wherever required.
The DFS has been reviewing the progress through video conference on regular basis.
2.6: Implementation of Bhoomi-Bank Integration:
The Banks have carried out 1,48,064 online transactions under Bhoomi Project as on
22.07.2014 since inception. The Revenue Dept, GoK, has informed that noting of lien in
ROR and EC simultaneously is not possible due to limitation of technology under BhoomiBank Project. However, it is informed that they have taken up improved version of Bhoomi
Project “NAMMA BHOOMI” where the above request for noting of lien simultaneously in
ROR & EC would be considered by merging ‘Kaveri’ project with ‘Bhoomi’ project. In this
regard, a kick-off meeting was convened on 30.5.2014 by Revenue Department and they
have already selected Software Developer to integrate “Bhoomi” with “Kaveri” and role of
each stakeholder defined.
Bank wise details are furnished in the Annexure- D1
2.7: Providing Banking Outlets in all villages with population above 2000
All the identified 3395 unbanked villages have been provided with banking outlets by the
banks, thereby achieving cent percent coverage. It comprises BCAs-2903 (including BCAs
in 1551 USBs), B & M Branches-466 and Mobile Vans-26, aggregating to 3395 as on June
2014.
In tune with the directions of the RBI, the Banks in Karnataka are required to ensure that
15% of these villages covered with Brick & Mortar Branches. Presently, Brick & Mortar
Branches have been opened constituting around 13.73%, which is to be stepped up to 15%
to comply with the RBI direction.
Banks have been requested to extend the banking services like in-built OD facility, pure
savings products in the form of RD, credit in the form of KCC/GCC, remittances and
14
providing Micro-Insurance to the targeted people of the State for a meaningful & holistic
financial inclusion.
The bank wise number of villages covered & progress made are furnished in Annexure ‘A’
2.8 : Providing Banking outlets to villages with population of 1600 to 2000 as per
2001 census
In accordance with DFS: MoF: GoI letter F. No. 3/5/2012-FI (C 52937) dated 18.5.2012,
SLBC in association with LDMs has identified 1562 villages under population group of 16002000 (as per 2001 census) in the State under Swabhimaan FIP and allocated to the banks
based on Gram Panchayat model for providing banking outlets. As of June 2014, 1378
villages have been covered.
SLBC has been collecting progress report on monthly basis for close monitoring and onward
transmission to DFS: MoF: GoI. The participating Banks, in terms of DFS guidelines, have
been advised to make use of the existing BCs for rendering services in other villages since
the common RFP mechanism could not come into place. Further, in view of implementing
DBT in selected districts, i.e., Mysore, Tumkur & Dharwad, all villages in the said Districts
have to be provided with Banking outlets as population criterion has no relevance. All the
participating banks are requested to cover remaining villages immediately and report to
SLBC.
Bank-wise number of villages allocated has been furnished in the Annexure ‘B’.
2.9 : Roadmap for Providing Banking Services in villages with population below 2000
In terms of guidelines of RBI Cir. RPCD. CO. LBS. No. 86/02.01.001/ 2011-12 dated
19.6.2012, SLBC had informed all the Banks and LDMs to finalise Roadmap with details of
allocated villages (district-wise) as per the formats prescribed by RBI.
Action Taken:
In terms of RBI guidelines, Banks have been allocated the villages having population less
than 2000 based on Gram Panchayat model in their respective districts. There are 23126
villages identified with < 2000 population. A total of 16507 villages are covered upto June
2014 as against cumulative target of 22345 villages upto March 2015. A roadmap has
been prepared with the provision of opening B & M Branches and submitted to RBI. Further,
RBI has advised that at-least 5% of the villages allotted under this category shall be provided
with banking outlets in the form of Brick & Mortar branches. Accordingly, 235 villages are
covered by B & M branches upto June 2014.
The details are furnished in Annexure C (Progress made upto June 2014).
15
The progress in implementation of the scheme was reviewed and the participating Banks
have committed to accomplish the task before the stipulated time. It was transpired during
the meeting that “a village is considered to be covered when it has a bank branch or fixed
location BC outlet or a BC is visiting the village on pre announced days. A village is not
treated as covered when Branch or BC outlets are available in some other villages
from where people are availing services. It may be noted that the objective behind
covering the entire country whether at the Gram Panchayat or Village level is the same, i.e.,
to provide banking services to every eligible individual in the country.
3.0 :
Electronic Benefit Transfer [EBT] Scheme
One District- Many Banks Model:
In terms of the MOU signed with the Govt of Karnataka Banks are implementing EBT
Scheme on a pilot basis in Bellary, Chitradurga, Gulbarga and Yadgir districts under “One
District-Many Banks” Model by adopting Service Area Approach Under Lead Bank Scheme.
It is implemented under the aegis of SyndicateBank, Canara Bank and SBI, the lead banks
in these districts. The SSP payments are made electronically through Smart cards in Bellary
and Chitradurga District.
One District – One Bank Model:
In other three districts, namely – Chamarajanagar [SBM], Mandya [Vijaya Bank] and
Dharwad [Axis Bank], EWBT is being implemented under One District-One Bank Model.
The summary of the progress under EBT is furnished below:
STATUS on 7 PILOT DISTRICTS EBT PROGRESS - as on 30.06.2014
NREGA
S.No.
DISTRICT
SSP
Data
Received
Enrllmt
Compltd
A/Cs
Opened
Cards
Issued
Data
Recd
Enrollmt
Compltd
A/Cs
Opened
Cards
Issued
1
Bellary
829018
293655
276911
271310
133099
88457
66653
63271
2
Chitradurga
822745
73334
72284
70827
99400
75674
70419
69211
3
Gulbarga
19728
7386
5263
5257
56555
30656
17770
17753
4
Yadgir
86767
12032
11030
10903
23535
10151
6246
6229
1758258
386407
365488
358297
312589
204938
161128
156464
One Dist Many
Bank Model
5
Chamrajnagara
402703
106392
105427
105422
113134
84221
84221
79116
6
Dharwad
322947
106552
106552
106552
125863
87706
86258
86258
7
Mandya
391607
182189
181124
179928
189904
137515
137515
136844
One Dist
One Bank Model
1117257
395133
393103
391902
428901
309442
307994
302218
16
Grand
Total
2875515
781540
758591
750199
741490
514380
469122
458682
(Data Source :Technology Service Providers)
In tune with the suggestion emerged in the last meeting, the DSSP, Revenue Dept., Govt. of
Karnataka has issued a circular dated 27.5.2014 for constituting a Sub-divisional level
Coordination Committee under the chairmanship of Asst. Commissioner to expedite the
process on a mission mode and to achieve 100% under SSP and MGNREGS by June 2014
and Sep. 2014, respectively. SLBC has already sent the above circular to all the 7 LDMs
vide letter dated 3.6.2014.
The RDPR Dept., GoK was requested in the last SLBC meeting to sanction the claims
submitted by the Lead Banks in respect of Smartcard charges and Turnover Commission
pertaining to Bellary & Chitradurga Districts.
In order to sort out issues and to hasten the implementation, as per the decision taken in
127th SLBC meeting, a meeting of all the stakeholders was convened on 24.6.2014 and
subsequently on every Tuesday and steps are being taken for speedy implementation.
Bank-wise performance is furnished in ‘Annexure E’.
AGENDA 4.0 : FINANCIAL LITERACY CENTRES (FLCs):
RBI had communicated the guidelines on opening of Financial Literacy Centres (FLCs).
SLBC had informed all Banks who sponsored FLCs and other Banks to abide by the
guidelines of RBI and submit a quarterly report as per the modified format as per RBI Cir.
RPCD.FLC.No.218-348/12.01.018/2014-15 dated 7.7.2014 and communicated by SLBC.
In terms of decision taken at the State Level Monitoring Committee on FLCs, Banks are
requested to open FLCs at taluka level as per the allocation made at DCC. LDMs are
advised to follow up the matter in the DCC/DLRC, revisit allocation already made wherever
required and pursue with the Banks/ Trust to open the FLCs at taluka level. There are 106
FLCs opened so far.
As per the allocations made by DCCs all the Banks are requested to open the FLCs in the
Blocks allotted to them within the time frame. The list of FLCs to be opened has been
communicated to the concerned Banks vide our letter No.398 dated 21.7.2014.
The
progress achieved in opening of FLCs shall be informed to SLBC.
A list of FLCs opened is furnished in Annexure F.
AGENDA 5.0 : INTEREST SUBSIDY SCHEME ON CROP LOANS TO FARMERS UPTO
` 100000/- THROUGH PSBs/RRB
The Interest subsidy claims in respect of 116545 farmers to the tune of ` 4.46 crore has
been submitted to Dept of Agriculture during the first quarter of FY 2014-15. The amount
17
settled during the quarter is Rs. 2.34 crore involving 50541 farmers. The claims to the extent
of ` 5.21 crore involving 1,41,985 farmers are pending with the Dept.
All Banks are
requested to lodge claims under the scheme to SLBC for doing the needful.
AGENDA 6.0 : Weavers Credit Card under the Comprehensive Financial Package:
As per GoI instructions banks are required to issue Weavers Credit Card to the eligible
farmers who are availing working capital limit.
Normally, the targets are fixed by the
Department of Handlooms, Govt of Karnataka.
As the progress is being reviewed by the Ministry of Textiles, NABARD is required to submit
the progress in issue of WCC, amount sanctioned and amount disbursed to GoI.
The
Banks are once again requested to submit the progress report by 5th of the following
month and take effective steps to issue weavers' credit cards and achieve the target
by the year end.
NABARD has observed that there is slow progress in financing weavers / Issue of Weavers
Credit Cards. All Banks are requested to advise their branch incumbents for financing those
weavers who have been provided assistance under the RRR package.
AGENDA 7.0 :
MONITORING OF VENTURE CAPITAL ASSITANCE SCHEME
IMPLEMENTED BY SMALL FARMERS’ AGRIBUSINESS CONSORTIUM (SFAC)
The Dept. of Agriculture & Cooperation, Ministry of Agriculture, GoI has promoted SFAC for
implementation of Venture Capital Assistance Scheme. This helps entrepreneurs to set up
agri business enterprises.
The scheme envisages provision of ‘no-interest’ loan to agri
business promoters, to be disbursed along with Bank loans. All the Banks are requested to
participate in the scheme and inform the progress on quarterly basis so as to enable SLBC
to review and monitor implementation of the scheme.
The Dept of Agriculture had convened a meeting of Producers’ Companies / Farmers’
Producer Organisation on 10.7.2014 to discuss about schemes available for encouraging
organic farming and also subsidy/financial assistance available under the scheme. In the
meeting SLBC has requested the Dept. of Agriculture to furnish the list of such organisations
to enable them to circulate among Banks so that Banks can go ahead with the Scheme.
AGENDA 8.0 :
SETTING UP OF KARNATAKA FARMERS’ RESOURCE CENTRE
[KFRC] AT BAGALKOT
Karnataka Farmers’ Resource Centre [KFRC] is set up at Bagalkot through SLBC with the
support of Govt. of Karnataka, NABARD, 10 Banks [Viz., Syndicate Bank, Canara Bank,
Corporation Bank, Vijaya Bank, State Bank of India, State Bank of Mysore, State Bank of
Hyderabad, Karnataka Vikas Grameena Bank, The Karnataka Bank Ltd and Krishna
18
Grameena Bank] and B.V.V. Sangha, Bagalkot. KFRC is an Apex State Level Institute
constituted under Charitable Trust. Any institution / individual making donations /
contributions to KFRC, is eligible to claim Income Tax exemptions under section 80G of IT
Act.
The KFRC has conducted 27 training programmes involving 2746 participants during the
current fiscal 2014-2015. The cumulative works out to 363 programmes and 24427
participants since inception.
AGENDA 9.0 : REPORT OF THE HIGH LEVEL COMMITTEE TO REVIEW LEAD
BANK SCHEME - IMPLEMENTATION OF THE
RECOMMENDATIONS
RBI had advised SLBC to implement the recommendations of the High Level Committee on
Lead Bank Scheme. In compliance, 1) SLBC, Karnataka has launched its website. SLBC
has hosted in their website the salient features of various Govt. sponsored schemes, both
central and state which are in operation in Karnataka.
2) SLBC has advised Lead banks/Commercial Banks and LDMs to take appropriate steps
for implementing the recommendations pertaining to them.
3) Formation of Sub-Committees: SLBC has constituted 12 Sub-Committees for effective
implementation & close monitoring of Lead Bank scheme.
4) The following Sub-Committee Meetings were held so far (a) Flow of Credit to Agriculture
(Annex-19A) (b) Credit Deposit Ratio (Annex-19B) (c) SHG-Bank Linkage (Annex-19C)
(d) Govt. Sponsored Schemes (e) Education Loans (f) Annual Credit Plan (Annex-19D).
The Convenors of Sub Committees are requested to submit the approved minutes, if not
submitted till date.
5) In the 127th SLBC meeting, it was decided to form a Sub-committee on Investments
under the Chairmanship of Pr. Secretary, Agriculture, GoK and GM of Canara Bank as
Convenor. The Convenor has sought the convenient date for convening the meeting
from the Chairman.
6) SLBC has conducted the Meeting of Steering Committee on R-SETIs on 26.6.2014.
(Annexure 19E)
AGENDA 10.0 :
REVIEW OF BANKING STATISTICS AS OF JUNE 2014
The Bank-wise position as of June 2014 is furnished in Annexure IA in respect of Branch
Net Work, Deposits and Annexure IB for Advances and CD ratio.
Branch Network:
As at the end of June 2014, the total number of bank branches in the State were 9516, out of
which, Commercial Banks-6992, RRBs-1581, KASCARD-201, DCC Bank-672, Karnataka
Industrial Coop Bank-38 and KSFC- 32 Branches.
19
ATM : There are 11888 ATMs in the State, out of which, 1811 are in rural, 2124 are in
S. Urban, 2848 are in Urban and 5105 are in Metro areas.
Deposits:
The aggregate deposits of Banks was ` 529774 crore as at the end of June 2014, when
compared to the level of ` 460344 crore as on June 2013, registering an increase of
` 69430 crore showing a growth rate of 15.08%.
Advances:
The total outstanding Advances of Banks was ` 400493 crore as at the end of June 2014 as
compared to the level of ` 338986 crore as at June 2013, registering an increase of
` 61,507 crore showing a growth rate of 18.14%.
Credit-Deposit Ratio:
The Credit Deposit Ratio as of June 2014 was 75.60% vis-à-vis 73.64% as of June 2013
showing an increase of 1.96%. The CD ratio was the highest at 102% in Rural areas as
compared to 77% in Semi-Urban, 67% in Urban and 75% in Metro areas.
Further analysis indicates that some banks with good presence are having CD ratio below
the bench mark level of 60%. [OBC – 57%, Karnataka Bank - 43%]. Banks which are having
CD Ratio below 60% need to take necessary steps immediately to increase flow of credit to
productive sectors of the economy.
All Banks are requested to improve their CD Ratio by accelerating lending to various sectors,
having good potential for credit deployment in the State and contribute towards overall
economic development.
Priority Sector Advances:
The outstanding level of total priority sector advances of Banks stood at ` 159807 crore as
of June 2014 as against ` 136618 crore as at June 2013 showing an increase of ` 23189
crore recording a growth of 16.97%. The percentage of priority sector advances of Banks
works out to 39.90% marginally below the Benchmark level of 40% stipulated by RBI.
20
The total agricultural advances as at June 2014 were to the tune of ` 77619 crore
constituting 19.38% of the total advances of Banks against mandatory level of 18%. Out of
which, direct advances to agriculture stood at ` 62754 crore forming 15.67% of total
advances as against the bench mark level of 13.50%.
The outstanding Advances to Weaker Sections by Banks was ` 56229 crore constituting
13.27% of the total Advances with an increase of ` 6588 crore over the corresponding
previous year level. The outstanding advances to Small & Marginal farmers was to the tune
of ` 38400 crore covering about 49.48 lakh accounts, constituting 49.71% of the total
Agriculture credit and 61.19% of direct agriculture credit. The outstanding advances to
SCs/STs were ` 9708 crore constituting 2.42% of the total advances.
The position of Priority Sector and Weaker Section Advances as at June 2014 is presented
in Annexure II A and B respectively.
HOUSING LOANS AND REVERSE MORTGAGE LOAN SCHEME:
The Banks have been financing construction of houses under different schemes to
encourage housing sector and to increase the availability of residential houses to the needy
people. The outstanding level of advances under housing as at June 2014 stood at ` 31593
crore covering 453353 accounts.
During quarter ended June 2014, the Banks have
disbursed ` 1324 crore involving 25545 accounts.
Public Sector Banks have formulated Reverse Mortgage Loan Scheme for the benefit of the
Senior Citizens. The Banks assisted 937 persons with a loan amount of ` 106.35 crore as at
June 2014. Bank-wise position of Housing Loans and Reverse Mortgage loans is furnished
in Annexure II C.
Under Golden Jubilee Rural Housing Scheme (GJRHS), Banks have sanctioned 647 loans
with credit limit of ` 56.96 crore upto June 2014. The outstanding level was ` 765.74 Crore
spread over 20178 a/cs.
RAJIV RINN YOJANA (RRY)
Rajiv Rinn Yojana scheme is formulated by modifying ISHUP with enhanced scope and
coverage. The scheme was launched to provide interest subsidy of 5% on loan amount of 5
lakh borrowed by the EWS/LIG with long tenure of 15-20 years; for construction of new
house, purchase of house as well as for extension of existing building. For LIG, the ceiling
loan is 8 lakh, however, subsidy will be given for loan amount upto Rs. 5 lakh only. In this
scheme, bank and beneficiaries would require the intercession of ULB in identification of
21
beneficiaries and liaise them with bankers. Directorate of Municipal Administration has been
nominated as State Level Nodal Agency for the implementation of RRY in the state. HUDCO
and NHB are nominated as Central Nodal Agencies.
Status of the Scheme:
• GoK has designated “Tahsildar” as income certifying officer under RRY scheme.
• Sanctioning loan to 14600 beneficiaries is the State annual target under RRY and
the same is bifurcated up to district/ULB level/ and bank-wise targets are
allocated. The selection of beneficiaries is under progress.
• GoK approved the implementation strategy of RRY.
• As per direction of the Secretary, UDD a proposal on defining new income criteria for EWS
and LIG was submitted to GoK for its directions.
• Translation of guidelines in local language is completed.
• Video conference was held on 21.06.2014 with 218 ULBs under Chairmanship of the
Director, DMA and Project Director/ Commissioner/Chief Officer/Lead Bank Manager
were briefed on the implementation of RRY.
• Initially, Information Education & Communication (IEC) plan is prepared for 3 ULBs for
quarter of July 2014- Sept 2014 as a pilot. A letter has been written to Joint Secretary
(Housing), MoHUPA for approval of IEC plan and also to provide financial
assistance.
• A request for invention of new roofing technology suiting various geographical areas was
sent to Indian Institute of Human Settlement, Indian Institute of Science, The
Institution of Engineers (India), The National Institute of Technology Karnataka.
• Letter was to ULBs requesting to reduce or provide concession for license or building
permission plan
The following points are put forth for SLBC directions/decision:
• Signing of MoA with CNAs (Banks are yet to sign MoA with CNAs)
• Simplify application format and recommending the same to all banks
• providing Concession in the loan processing fees
• Relaxation for age limits
The House may deliberate on the subject.
Under RRY, the outstanding was 3441 a/cs involving ` 22.93 crore. Under EWS and LIG
categories, 53 and 231 loans with loan amount of ` 0.41 crore & 7.67 crore have been
sanctioned respectively and the outstanding amount was ` 20.43 crore (34130 a/cs) &
`
1455.82 crore (53341 a/cs) respectively. Under DRI loans the outstanding balance as on
June 2014 was ` 10.58 crore (637 a/cs)
EDUCATION LOANS:
With an objective providing financial support to deserving and meritorious students to pursue
higher studies, Banks have formulated Education Loan scheme as per IBA guidelines. As at
June 2014, the outstanding level of education loans stood at ` 4699 cr covering 220648 a/cs.
22
Banks have disbursed loans to 13868 students amounting to ` 131.09 cr up to the end of
June 2014. Consolidated position under Education loan is given in Annexure II D.
As directed by DFS: MoF: GoI, in their letter F. No.1(1)2011-CP dated 23.6.2014, SLBC has
informed all the Banks to gear-up the flow of credit to Education Sector. The GoI advised
SLBC to allocate the targets so as to improve the level of outstanding loans under Education
from ` 4684.59 cr as on 31.3.2014 to ` 5387.28 cr (249829 accounts) by 31.3.2015.
As
directed by GoI, SLBC had allocated target of 10% growth in number of accounts (227117)
and also 15% growth in amount outstanding (` 4684.59 cr).
Accordingly, SLBC has
allocated the Bank-wise targets to all the Banks vide letter dated 4.7.2014 with an advise to
accomplish the targets well within the time.
Credit Flow to Micro, Small & Medium Enterprises [MSME] – June -2014
As per the guidelines issued by GoI/RBI, the Banks have taken steps for increasing the flow
of credit to Micro, Small & Medium Enterprises. The outstanding level of credit to Micro
Enterprises stood at ` 21675 crore. The advances to Small Enterprises were at the order of `
26440 crore. The advances to Medium Enterprises stood at ` 9089 crore as at June 2014.
The percentage of advances to Micro & Small Enterprises [` 48115 crore] was at the order
of 84.11% out of the total advances to MSME Sector [` 57204 crore].
The sector-wise particulars are as follows:
` in crores
SL
No
SECTOR
MANUFACTURING
SECTOR
A/CS
Amt
SERVICE SECTOR
TOTAL
A/CS
Amt
A/CS
Amt
1
MICRO ENTERPRISES
94519
7188
747653
14486
842172
21675
2
SMALL ENTERPRISES
29943
14687
56388
11753
86331
26440
3
MED ENTERPRISES
TOTAL
2228
126690
6366
28241
2255
806296
2723
28962
4483
932986
9089
57204
Bank-wise particulars of advances to MSME Sector are furnished in Annexure III.
The Reserve Bank of India is regularly conducting the meeting of the Empowered
Committee on MSME and Meeting of State Level Inter Institutional Committee (SLIIC) for
Karnataka, every quarter to review the implementation of the recommendations of the
working group on rehabilitation of sick MSMEs, flow of credit to MSE sector, collateral free
loans to MSEs, flow of credit to MSME clusters and conducting awareness programmes and
entrepreneurial camps-CGTMSE etc. RBI is calling for the information on the above issues.
23
Banks are requested to submit the compliance report to them every quarter before 15th of
succeeding month from end of the quarter.
As per the instruction of Central Office, RBI, RO, Bangalore has constituted a High Level
Committee under the ambit of Empowered Committee on MSME to give focused attention
on the progress made by Banks in the region on restructuring/ rehabilitation of sick units in
the MSE sector.
Functions of the HLC:
1. HLC will effectively monitor the timely rehabilitation and restructuring of sick micro
and small enterprises.
2. Ascertain from the bankers whether they have any restructuring mechanism in place
for micro and small units akin to Corporate Debt Restructuring (CDR) mechanism for
large units.
3. Monitor the rehabilitation of Sick Micro and Small Enterprises (MSEs) as envisaged
in RBI CO cir. RPCD. CO. MSME & NFS. BC. No. 40/ 06.02.31/ 2012-13 dated
November 01, 2012.
4. Monitor the functioning of MSE Rehabilitation Cell (MRC) in their jurisdiction by
banks as mentioned in CO Circular RPCD MSME & NFS. BC. No. 74 / 06.02.31/
2012-13 dated May 09, 2013.
5. In the above Circular, banks were advised to monitor the progress in rehabilitation of
sick MSE Units on a quarterly basis in the prescribed format and to place the same
on their website. The data hosted by banks may be used while reviewing the
progress in this regard.
COVERAGE UNDER CREDIT GUARANTEE SCHEME OF CREDIT GUARANTEE FUND
TRUST FOR MICRO & SMALL ENTERPRISES [CGTMSE] –
Under guarantee scheme of CGTMSE, Banks have covered 10408 units with an approved
amount of ` 557.70 crore during the QE June 2014 and the cumulative progress was
125678 units amounting to ` 6338.70 crore [Source: Credit Guarantee Fund Trust for Micro
& Small Enterprises].
AGENDA 11. 0 : IMPLEMENTATION OF ANNUAL CREDIT PLAN (2014-15)
The progress in disbursement under Annual Credit Plan for the quarter ended June 2014
with bank wise position is presented in Annexure IV. Consolidated Agency-wise targets and
achievements are as follows:
24
Disbursements (` in Crore)
Sector
Annual Target
Primary
Secondary
Tertiary
Total PSA
Crop Loan
57247
16930
15644
89821
39252
AGENDA 12.0 :
12.1:
Comm.
Banks
9143
2885
3803
15831
5895
Co-op.
Banks
3140
0
0
3140
3079
RRBs
1994
279
307
2580
1873
KSFC
% age
achmt.
Total
0
80
32
112
0
14277
3244
4142
21663
10847
24.94
19.16
26.47
24.11
27.63
CENTRAL AND STATE SPONSORED SCHEMES
PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME [PMEGP]
Khadi & Village Industries Commission [KVIC] is the nodal agency for implementing Rural
Employment Generation Programme [REGP] of GOI, Ministry of Micro, Small & Medium
Enterprises [MSME]. KVIC Mumbai has advised that while implementing the programme, the
nodal agencies/blocks have to ensure coverage of social category beneficiaries such as SC15%, ST –7.5%, OBC-27%, Minorities-5%, Ex Serviceman-1%, PHC –3%, Women-30%
(overall).
The progress under PMEGP for the year 2014-15 (as on 24.07.2014) is as follows:
(Rs. in lacs)
Sr.
No
Agency
Revised Target for 2014-15
Proj
MM
No. of
sanctioned
projects and
remain pending
for release of MM
subsidy for the
year 2013-14
Emp.
Proj.
Margin Money Subsidy
disbursed during current year
2014-15 (Pending claims of
2013-14)
MM
Proj.
MM
No. of
fresh/new
application
s/projects
received
during
current
year 201415
Emp.
1
KVIC
1264
1588.62
10112
171
712.45
27
135.40
194
2712
2
KVIB
1264
1588.62
10112
580
1395.20
7
19.42
49
4847
3
DIC
1687
2118.17
13496
857
1869.72
30
59.85
237
11496
Total
4215
5295.41
33720
1608
3977.37
64
214.67
480
19055
The State Director, KVIC, Bangalore has informed that the tentative Margin Money allocation
for the year 2014-15 as received from the Directorate of PMEGP, KVIC, Mumbai is as below:
Particulars
No. of Projects
M.M. (Rs. in lacs)
Employment (in Nos.)
KVIC
KVIB
DIC
TOTAL
1264
1264
844
843
4215
1588.62
1588.62
1059.08
1059.08
5295.40
10112
10112
6748
6748
33720
Further, it is also informed by the State Director, KVIC that the Ministry of MSME, GoI has
issued 100 days Action Plan for the year 2014-15. The details are as under:
TASK
TIMELINE
ACTION TAKEN / TO BE
25
Inviting PMEGP applications for 30 days (by June end)
2014-15 through advertisement
Forwarding of PMEGP applications 30 days (by July end)
to District Level Task Force
Committee (DLTFC)
Convening
of
DLTFC
and 40 days
forwarding of application to banks
and initiate process of monitoring
and review of sanctions and
disbursement with banks and
implementing agencies at the State
Level and Zonal Level
TAKEN
Paper advertisement has
been given for inviting
fresh applications under
PMEGP Scheme
To be communicated to all
the DLTFC
The implementing agencies to convey the targets for 2014-15 under the scheme.
The State Director, KVIC, Bangalore vide their letter dated 30.6.2014 has communicated
policy clarification on certain issues raised by Field Officers relating to PMEGP scheme. The
details are as under:
Sl.
No.
1
2
3
Issue
Ministry’s Views
Transfer of margin money account on the death
of beneficiary who had availed financial
assistance under PMEGP to the legal heirs of
beneficiary
Transfer of the loan account from one bank to
another and from one financing branch of the
bank to another financing branch of the same
bank
Transfer of PMEGP units / site of unit from one
place / district to another place / districts with
the consent of financing banks branch
Terms and conditions of loan
should
decide
the
issue.
Concerned nodal banks can take
their own decisions in the matter
IF wing does not support transfer of
PMEGP units since it would create
major disruptions impinging on the
viability of the project / venture.
All the implementing agencies are requested to take note of the same and act accordingly.
Permission for adjustment of Margin Money under PMEGP after completion of lock-in
period
In tune with the suggestion made during the last SLBC meeting, SLBC has addressed a
letter dated 12th April 2014 to CEO, KVIC, Mumbai to advise the KVIC / KVIB / DIC to obtain
the required documents / papers during the visit of 3rd party itself for verification to accord
permission well in advance for adjustment of Margin Money soon after completion of lock-inperiod. A copy of the letter was duly marked to State Director: KVIC: Bangalore. This would
avoid submission of necessary documents once again to the Nodal agency seeking
permission for adjustment of Margin Money after completion of lock-in-period and helps in
26
speedy adjustment of Margin Money by the Branches on the date of completion of lock-inperiod.
Indian Banks’ Association vide their letter dated 30.4.2014 suggested to constitute a Core
Committee of SLBC with representatives from Banks, KVIC & State officials to work out a
model project report for assessing working capital requirements under PMEGP. The group
can also deliberate on standardizing the assessment process so that deviation in credit
requirement recommended by KVIC and approved by the Banks will be minimized. They
have also suggested for reviewing the pending cases under PMEGP at DLCC/ SLBC level.
In compliance of the above, a Core committee of SLBC was convened on 11.7.2014. The
Committee deliberated in detail on the above issue and arrived at the following decision.
1. With regard to adjustment of subsidy, the Bankers expressed that they may be
vested with powers for issuance of adjustment of subsidy after lock-in-period instead
of joint visit by third party so as to enable them to put it in track. In response, the
State Director, KVIC, Bangalore has informed that the above matter will be brought to
the notice of Head Office, KVIC, Mumbai for vesting powers to the Banks.
2. With regard to working out a model project report for assessing working capital
requirements under PMEGP, KVIC requested the Bankers’ to consider the procedure
to work out working capital under ISEC Scheme which is in force and followed by the
institution’s as per KVIC pattern, i.e., 12 months period required for working capital
cycle. After detailed deliberations, the Bankers agreed to consider the KVIC pattern
for calculating the working capital under ISEC Scheme as a special case for Khadi
units as the Core Committee has made the above recommendation for the approval
of SLBC.
3. Standardisation of application form of all agencies – Uniformity need to be
maintained for standarisation of application forms by all the 3 implementing agencies.
The House to deliberate on the issue for according approval.
12.2: NATIONAL RURAL LIVELIHOOD MISSION (NRLM):
The Govt. of India has approved restructuring of SGSY as National Rural Livelihood Mission
(NRLM) and accordingly Karnataka has remodeled the Scheme under the banner
‘Sanjeevini’.
RBI: CO: Mumbai vide their Cir. RPCD. GSSD. CO. BC. No. 57/09.01.03/2013-14 dated
19.11.2013 has informed the details of guidelines for operationalisation of Interest
Subvention Scheme for SHG for Public Sector Banks. Banks were requested to follow the
guidelines scrupulously.
27
SLBC had requested PSBs and RRBs to furnish the details of non participating branches in
SHG finance to NABARD under a copy marked to KSRLPS.
The RDPR Dept., GoK has forwarded modified guidelines on implementation of Rajeev
Gandhi Chaitanya Scheme vide their letter dated 17.5.2014. All the Banks are requested to
scrupulously follow the revised guidelines.
As regards reconstitution of Local Advisory Committee of R-SETIs, the Monitoring Cell of
R-SETIs informed that SRLM : Karnataka vide their letter No.KSRLPS:SEP:6:2014-15 dated
29.4.2014 addressed to MoRD: GoI has requested to make CEOs of ZPs as chairperson of
the LAC meetings instead of Dy. Commissioners.
The GoK has issued necessary
instructions in this regard.
The DFS: MoF: GoI vide their letter F.No.3/6/2011-MF (part) dated 17.6.2014 has convened
the guidelines on Interest Subvention Scheme under NRLM in 150 Districts and other than
150 Districts (Category II Districts). The details are furnished in Annexure-G. All the Banks
are requested to follow the same scrupulously.
12.3: SCHEMES OF Dr. B. R. AMBEDKAR DEVELOPMENT CORPORATION LTD
The Corporation has submitted the Targets for 2014-15 under SEP & ISB schemes as
approved in their Board meeting held on 14.7.2014. The details are as under.
[Amt. ` in lacs]
SELF EMPLOYMENT PROGRAMME
Physical
Target
a)
Financial Target
Subsidy from
Bank Loan
Dr. BRADCL
1380.40
2760.00
Unit cost not exceeding Rs. 1.00 lakhs
3944
(Subsidy at the rate of 33% maximum Rs.
35,000/- per unit)
b) Unit cost exceeding Rs. 1.00 lakhs
1200
1800.00
5000.00
(Subsidy at the rate of 33% maximum Rs.
2.00 lakhs per unit)
c) Milch Animal (Two Animals)
6044
5900.00
10460.00
(Subsidy at the rate of 50% of the Unit cost
maximum Rs. 50,000/- per unit)
It is informed by the Corporation that the District-wise targets will be communicated shortly.
The House may deliberate on the issue and approve the plan.
12.4: SCHEME OF KARNATAKA S.T. DEVELOPMENT CORPORATION
The Corporation is implementing 2 schemes, viz, Self-Employment Scheme and ISB
Scheme for the benefit of persons belonging to Scheduled Tribes.
The progress for June 2014 is as follows.
(Amt ` in lacs)
28
Name of the
scheme
Target for 2014-15
Physical
Subsidy
Progress as at 30.6.2014
Physical
Subsidy
Bank
Total
loan
Self Employment
5714
2000.00
1873
548.21
762.09
1310.30
ISB Scheme
300
600.00
187
164.52
471.60
636.12
TOTAL
6014
2600.00
2060
712.73
1233.69
1946.42
The District-wise Progress is furnished in Annexure – V
12.5 : SCHEME OF KARNATAKA MINORITIES DEVELOPMENT CORPORATION
The Corporation is implementing the Swavalambana scheme. Progress as at June 2014 is
as under:
[Amt. ` in lacs]
TARGET
Physical
Financial
Physical
4000
600
1996
ACHIEVEMENT
Financial
Subsidy &
Bank Loan
MM
365.78
1259.39
The District-wise achievement is furnished in the Annexure VIII.
12.6: SCHEME OF D. DEVARAJ URS BACKWARD CLASSES DEV. CORPN. LTD.
D Devaraj Urs Backward Classes Development Corporation Ltd. is implementing
CHAITANYA Subsidy cum Soft Loan Scheme.
District-wise target for 2014-15 as provided by the Corporation has been communicated to
LDMs for distribution among Banks.
As requested by the Corporation to carry forward
pending 9000 applications of FY 2013-14, to the FY 2014-15, approval has been accorded.
LDMs / Banks are requested to implement the same.
AGENDA 13.0 :SPECIAL FOCUS PROGRAMMES
13.1
CREDIT FLOW TO MINORITY COMMUNITIES
The Banks have extended loans to 73902 beneficiaries amounting to ` 1341 Crore upto
June 2014. The outstanding level of advances to Minority Communities as at the end of
June 2014 was ` 17043 crore spread over 885847 accounts, constituting 10.66% of PSA.
29
Bank wise details of credit disbursement upto June 2014 & outstanding balance as at June
2014 are furnished in Annexure – X.
FLOW OF CREDIT TO MINORITY COMMUNITIES IN IDENTIFIED DISTRICTS
The outstanding level of credit to minority communities in the identified districts as at June
2014 is as follows –
([` in Crore]
Name of the District
Bidar
Gulbarga
Dakshina
Kannada
SBI
SBI
SyndicateBank
Name of Lead Bank
Priority Sector Advances
Lending to Minority Community
% of Minority Community Lending to PSA
Stipulated % of Minority Community Lending to
PSA
2525
395
15.64
4474
676
15.11
9199
2984
32.43
15
15
15
The flow of credit to minority communities in all the three districts has increased and
surpassed the stipulated target of 15% of priority sector advances in the respective districts.
13.2 : CREDIT FLOW TO WOMEN
Banks have disbursed ` 2980 Crore to 271559 Women Beneficiaries during the quarter June
2014. The outstanding level of Advances to Women Beneficiaries was ` 31150 crore as of
June 2014 constituting 7.78% of total of advances vis-a -vis stipulated target of 5%.
The Bank wise details are furnished in Annexure – XI.
13.3 : KISAN CREDIT CARD
The Banks have issued 266593 KCCs upto June 2014 with credit limit of ` 3148 Crore.
(` in crores)
Agency-wise number of Cards issued is as under:
Agency
Target for
2014-15
During the Year
Outstanding Balance
No.of cards
Issued
Limit
sanctioned
No. of
cards
Amount
Comm.Banks
522440
135780
2061
1068896
15513
RRBs
294560
110906
1039
745579
5942
Cooperatives
183000
19907
48
2074523
7093
Total
1000000
266593
3148
3888998
28548
Bank wise position is furnished in Annexure XII.
AGENDA 14.0
SELF HELP GROUPS/ JOINT LIABILITY GROUPS
Progress under SHG Bank Linkage as at June 2014 –
30
Outstanding position of advances to SHGs as at June 2014:
Agency
No. a/cs
Commercial Banks
RRBs
Cooperatives
Total
Amount
(` Crore)
204967
63570
73517
342054
3767
852
642
5261
Commercial Banks have directly credit linked 20822 SHGs with an amount of ` 263 crore
and indirectly 1 group with a limit of ` 40 crore. RRBs could credit link 4241 groups with an
amount of ` 84 crore and Co-op. Banks have credit linked 7567 groups with a limit of
`
126 crore upto June 2014. As regards credit linkage of JLGs, NABARD informed that
it has set a target of 20,000 for Karnataka state for 2014-15.
Consolidated progress by Banks under SHG bank linkage program as at June 2014 is given
in Annexure – XIII A TO D.
The LDMs are requested to submit Bank-wise SHG-BLP & JLG data on quarterly basis for
compilation.
AGENDA 15.0 : LENDING THROUGH MFIs:
Association of Karnataka Micro-Finance Institutions (AKMI) is overseeing the working of
various (21) MFIs.
It has informed that the loan outstanding given by various MFIs in
Karnataka as on June 2014 was ` 5371.94 crore covering 44,67,143 accounts. Out of which,
overdue is only ` 55.25 Crore spread over 82225 accounts. MFI wise outstanding and
Overdues as on June 2014 is enclosed as Annexure- XIV-D.
AGENDA 16.0 : STREE SHAKTI PROGRAMME
The Women & Child Welfare Development, GoK has communicated the targets for linkage
of Stree Shakti Groups for the year 2014-15 is as under:
No. of Stree Shakti Groups formed
:
140000
No. of Groups credit linked
:
126221
Target for credit linkage for 2014-15
:
13779
The District-wise targets are furnished in Annexure- XIV-E
31
The progress under Stree Shakti Programme as furnished by the Women & Child
Development Department, Govt. of Karnataka, for June 2014 is as under:
No. of Stree Shakti Groups formed
140000
No. of groups maintaining accounts with banks
140000
Cumulative amount saved by the Group Members
No. of groups credit linked
` 1066.65 Cr
126221
` 473.37 Cr
Loan disbursal by banks
AGENDA 17.0 : UDYOGINI SCHEME OF KARNATAKA STATE WOMEN’S
DEVELOPMENT CORPORATION [KSWDC]
Karnataka State Women’s Development Corporation, the Nodal agency for Udyogini scheme
vide their letter dated 24.7.2014 has communicated the action plan for implementing the
scheme.
Target
Physical Financial
11598
` 1030.05 lakh
The District-wise / Category-wise targets are furnished in Annexure – XIV-C.
AGENDA 18.0: IMPLEMENTATION OF SPECIAL SCHEMES
A] Agri-Clinics / Agri-Business
As per the information received from Banks, the outstanding under Agri-clinics/Agri-Business
as of June 2014 was for 2435 Clinics [` 136.17 cr] & 611 Agri-Business units (` 36.13
crore). During the QE June 2014 Banks have financed 1 Agri-Business Centres (` 17 lakh)
and 10 Agri Clinics (` 10.13 cr). Banks are requested to monitor the implementation of the
scheme at the ground level and ensure sanction of the proposals received on merits and
submit subsidy claims to NABARD in respect of eligible proposals. Banks have to take
advantage of Capital Subsidy available to the above schemes.
B] Rural Godowns
The Banks have financed 90 Rural Godowns with credit limit of ` 32.44 crore up to June
2014. The outstanding amount was ` 417.36 crore comprising 2674 accounts.
32
The Govt of Karnataka has also issued order and certain modifications to provide interest
subsidy during the first five years for the loans sanctioned after 1.4.2013 and the same has
been communicated to all the Banks.
C] Implementation of National Horticulture Board [NHB] Subsidy Scheme
During the QE June 2014-15, NHB has released subsidy in respect of 37 proposals under
the scheme amounting to ` 310 lakh.
NHB has informed that they have revised operational guidelines of the scheme vide their
Cir.No.NHB/CC/Project Appraisal Agency/2014-15 dated 22.5.204. The details are available
on the website: www.nhb.gov.in.
AGENDA 19.0 : RECOVERY
19.1 :
RECOVERY OF BANK DUES UNDER GOVERNMENT SPONSORED
SCHEMES
The summary of scheme-wise NPA position as at June 2014, is furnished here under:
(Amount in ` crore)
SECTOR
PMEGP
SGSY
SJSRY
Individuals
Groups
USEP
UWSP
Balance
O/S
281.98
79.36
168.56
161.60
39.08
NPA Level
% of NPA
50.15
12.32
15.74
40.06
4.59
17.78
15.52
9.34
24.79
11.75
Nodal agencies [DIC, RDPRD/Zilla Panchayat, KVIC/ KVIB & ULB (municipalities)] are
requested to extend assistance to banks for recovery of overdues in co-ordination with
Banks. Bank wise details are furnished in Annexure XV, XV-A & XV-B.
19.2 : NON-PERFORMING ASSETS POSITION :
There were 732336 NPA a/cs involving an amount of ` 16835 crore as of June 2014,
accounting for 4.21% of total advances. The Farm sector accounts for 320995 a/cs, with a
balance of ` 4733 crore constituting 6.09% of advances to agriculture. NPA under MSE and
OPSA works out to 6.52 and 1.82% respectively.
Bank wise details are furnished under Annexure – XVI.
19.3 : RECOVERY UNDER SARFAESI / DRT / LOKADALAT
33
Banks have recovered ` 221.28 crore against amount involved ` 879.68 crore under
SARFAESI Act, ` 39.74 crores against amount involved ` 507.70 crore under DRT and
`
15.34 crore against amount involved ` 160.73 crore through Lok Adalat up to June 2014.
In the Budget Speech presented in the Lok Sabha, the Hon’ble Finance Minister has
made announcement on setting up of six new Debt Recovery Tribunals, including
Bengaluru.
19.4: RECOVERY UNDER KPMR & KACOMP ACTS
As of June 2014, 24173 cases filed by Banks under RR Act were pending before Revenue
Authorities involving an amount of ` 233.33 Crore. The Banks have filed 1225 applications
during June 2014 quarter involving loan amount of ` 1.34 crore. There are 6631 cases
pending for more than 3 years for recovery under RR Acts.
Bank wise details are furnished under Annexure – XVII and XVII A
AGENDA 20.0 : Lead Bank Scheme- Strengthening & Monitoring Information System
(LBS-MIS)
RBI vide their Cir No. RBI/ 2012-13/ 450 RPCD. CO. LBS. BC. No. 68/ 02.01.001/ 2012-13
dated March 19, 2013 has modified the statement for ACP target as LBS-MIS-I, statement
for disbursement and outstanding- LBS-MIS-II, III. Similarly, statement for Financial Inclusion
Plan (FIP) renamed as LBS-MIS-IV and LBS-MIS-V. These statements are to be submitted
on quarterly basis commencing from June 2013.
SLBC had advised all Banks to submit the above statements as per the periodicity of
submission. The consolidated statements of LBS-MIS-I, II, IV, V for the State as a whole, as
on June 2014 are enclosed as Annexures XVIII -1 to 4.
AGENDA 21. 0 : NABARD AGENDA NOTES:
I National Mission on Agricultural Extension and Technology (NMAET)
With a view to giving focused attention for strengthening agricultural extension to enable
delivery of appropriate technology and improved agronomic practices to the farmers in the
country, Government of India has launched a Centrally Sponsored Scheme namely “National
Mission on Agricultural Extension and Technology (NMAET)”. Several of the business and
developmental interventions of NABARD converge with the objectives and strategies under
NAMET. The Banks are requested to initiate action in the following areas.
(a) Farmers’ Training and Rural Development Centers (FTRDCs)
The FTRDCs play a major role in building the capacity of farmers for adoption and
management of new technology. With the main objective of scaling up of operations of
both existing as well as new Farmers’ Training Centres already established/to be
34
established by them and also to ensure increased coverage of farmers for their capacity
building, NABARD is providing promotional grant for meeting 50% of their annual
recurring expenses or Rs.15 lakh (Rupees fifteen lakh only), whichever is lower. Banks
may make use of the above assistance and come forward for the formation of more
FTRDCs/enlarging the operation of the existing FTRDCs to reach the objectives of the
Mission and the betterment of the farming community.
(b) Farmers’ Clubs
Farmers’ Clubs have become an important vehicle for the farmers in transfer/adoption of
new and innovative technologies. They also play a lead role in many other areas. Banks
may, therefore, promote more number of Farmers’ Clubs and arrange to launch the
Clubs already sanctioned.
The Clubs may be encouraged to make use of NABARD’s
Capacity Building for Adoption of Technology (CAT) Programme wherein assistance is
extended to the Clubs for undertaking exposure visits to research institutes, KVKs,
SAUs, etc. to build the capacity of the farmers for adopting new/innovative methods of
farming.
II Issue of Weavers Credit Card under the Comprehensive Financial Package
As per GoI instructions banks are required to issue Weavers Credit Card to the eligible
farmers who are availing working capital limit.
Normally, the targets are fixed by the
Department of Handlooms, Govt of Karnataka.
As the progress is being reviewed by the Ministry of Textiles, NABARD is required to submit
the progress in issue of WCC, amount sanctioned and amount disbursed to GoI. In this
regards, SLBC is required to collect the data from the respective banks and submit a
consolidated report by 10th of the following month. NABARD has not received any such
report from SLBC so far.
SLBC is therefore, requested to advice all the banks which are providing weavers
credit at the Ground Level to submit the data without fail to enable SLBC to submit
consolidated report to NABARD for onward transmission to Ministry of Textiles, GoI.
III) Margin Money Assistance and Interest Subsidy for Handloom Sector
As per the guidelines dated 27 September 2013 issued by Ministry of Textiles, Govt of India,
the banks can claim Margin Money assistance and interest subsidy for the working capital
limit sanctioned under Handloom Sector to individual weavers, their SHGs and JLGs. The
advance claim is required to be submitted in Annexure IV format, final claim-cum-Utilisation
certificate to be submitted in Annexure V format after duly certified by the Chartered
Accountant of the bank and interest subsidy claim in Annexure VI format duly certified by the
Chartered Accountant of the bank.
35
SLBC is requested to advice the banks to submit the claim in the format prescribed by
GoI after completion of all formalities. The claims are required to be submitted only
by the RO/ Zonal Office/controlling office of the bank and not by any other (branches
are directly submitting without fulfilling the stipulated conditions). Necessary formats
are available on the website www.handlooms.nic.in
IV. Targets for the year 2014-15 under SHG-BLP and JLGs
The district-wise targets for SHG formation, credit linkage as well as JLG formation & credit
linkage have been presented in 127th SLBC meeting. Based on this, SLBC has
communicated district-wise targets with respect to SHGs to all the LDMs.
Keeping the budget announcement of provision of finance to 5 lakh joint farming groups of
“Bhoomi Heen Kisan” in view, it has been decided by NABARD that at least five lakh joint
farming groups will be financed through JLG mode of financing during the current year. This
may be achieved through extension of fresh finance to the existing stock of JLGs and
through promotion & financing of new JLGs. Financing of JLGs for Non-farm activities will
continue, over and above the allotted target for Joint Farming Group.
Accordingly, the overall target for financing JLGs has been increased to 20,000 for
Karnataka. District-wise allocation for credit linkage of 20,000 JLGs has been prepared by
NABARD (Annexure-XIX). SLBC is requested to issue necessary instructions to the LDMs to
further allocate branch wise target in consultation with DDMs. LDMs any be advised to
monitor the progress of implementation of the scheme on monthly basis and furnish the
monthly data of progress to SLBC with a copy to Regional Office of NABARD.
V. Submission of District wise data on SHG-BLP and JLG:
SLBC may consider compiling district-wise data under SHG-BLP in addition to the bank wise
data. In view of the added thrust by Government of India on progress on financing JLGs
SLBC may compile the same and furnish district-wise data for SHG-BLP and JLGs for
review in SLBC meetings.
VI. Financial Inclusion
(a)Targets under Issuance of RuPay KCC
NABARD has sanctioned financial assistance to all RRBs and one DCCB (South Canara) for
implementation of RuPay KCC project. We have also allocated a target of issuing 1,00,422
RuPay KCC cards and 3,83,937 cards respectively for Cooperative banks & RRBs in
Karnataka. SLBC may direct the DCCBs are requested to gear up implementation of RuPay
KCC project.
(b) Financial Inclusion Plan (FIP)
36
The FIP for 2013-14 to 2015-16 approved by the Board of the DCCB and RRBs further
disaggregated upto branch level needs to be reviewed by the Board in all its meetings.
RRBs & DCCBs may identify the problems in implementation of FIPs, find out suitable
solutions by preparing a time bound action plan for speeding up the provision of OD facility
in BSBDAs, KCC/GCC through BCs and increase the level of ICT transactions through BCs.
Progress in DCCBs is slow. The KSCAB is requested to impress upon DCCBs to adopt and
implement the FIP in earnest.
( c ) Printing of RBI's Publicity Material in Kannada
SLBC has consolidated the publicity material prepared by RBI in Kannada and submitted a
proposal for NABARD's assistance on behalf of all banks in the State. NABARD, Karnataka
RO has sanctioned and released Rs.11.07 lakh (100%) to SLBC for the said purpose. All
the banks are requested to send their further requirements to SLBC for supply of literacy
materials.
(d). Demonstration of banking technology :
RRBs and DCCBs are eligible for financial support upto Rs.10.00 lakh for demonstrating
banking technology under Financial Inclusion Fund of NABARD. Under the scheme, mobile
van fitted with ATM and POS machines will visit villages in the area of operations of the
RRBs and DCCBs. It will work primarily as a literacy tool by demonstrating use of ATMs /
POS machines. The bank will also provide financial literacy material in vernacular languages
about the KCC debit cards, ATM services and POS terminals to be provided in the mobile
van. Kaveri Grameena Bank and South Canara DCCB have been sanctioned support under
the scheme. Other RRBs/DCCBs may please expedite submission of proposals for similar
support.
(e) Sampoorna Vittiyea Samaveshhan (SVS)
The GoI is in the process of finalising national level financial inclusion plan "Sampoorn
Vittiyea Samaveshhan" (SVS) to bring banking services to the 10 crore uncovered
households, targeting to open 20 crore new bank accounts within 2 years. Each uncovered
household is expected to open two accounts, of which one has to be by a woman of the
family. The first phase of the plan will focus on providing banking services within 5 kms of
every habitation by September 2015 except hilly, tribal, forest and desert areas. The second
phase (2015-18) is expected to include financial literacy programme, micro credit availability
and creation of a credit guarantee fund for coverage of defaults in such accounts and micro
insurance. Considering the near future scenario, the banks may make all out efforts for
37
bringing banking services to the neglected uncovered households in the next one year. The
programme is expected to be launched on 15 August 2014. SLBC may guide all LDMs
to coordinate with DDMs for successful implementation of the plan.
VII. Government Sponsored Schemes:
(a) CSS for installation of solar PV lighting system and small capacity PV systems
under JNNSM - The scheme for solar lighting continues for the year 2014-15.
(b) CSS for installation of solar Pumpsets under JNNSM
A new component for solar pumpsets has been introduced, the salient aspects of which are
given below.
i. The scheme: Installation of 10000 Solar Photovoltaic Water Pumping Systems for
irrigation purpose (applicable from 01 April 2014 to 31 March 2016)
ii. Objective: To meet the irrigation requirements of land holdings for small and marginal
farmers
iii. Nodal implementing agencies: To meet the irrigation requirements of land holdings for
small and marginal farmers
iv. Eligible persons/institutions:
a. Institutions - All scheduled CBs, RRBs and State Co-operative Banks are eligible
b. Borrowers - Individuals, group of Individuals , SHGs, JLGs, NGO, Farmers Clubs,
Registered Farmers Producers Organisations etc . Bank loan eligible for refinance from
NABARD
v. Nature of support / assistance:
a. Models approved by MNRE are eligible;
b. Subsidy @ 40% of Benchmark cost/ TFO whichever is lower. Benchmark cost is Rs.
190/- per Wp Banks to ensure 20% margin.
c. Lock-in period – 5 years
( c ) Dairy Entrepreneurship Development Scheme
The scheme has been extended for the year 2014-15, with enhancement in the Unit Cost as
under;
Sl.
No.
1
2
3
4
5
Component
Unit Cost
Purchase of Dairy
animals
- 25 % (33.33% for SC/ST) capital subsidy on the maximum
project cost of Rs 6 lakh for small dairy units, subject to a
ceiling of Rs.15,000/- per animal.(Rs.20000/- for SC/ST
farmers)
Rearing of heifer
Project cost of Rs.5.30 lakh for 20 calf/unit with an upper limit
calves
of 20 calves. Subsidy shall be restricted on prorate basis to a
maximum of 20 calf unit subject to a ceiling of Rs.6600 per calf
(Rs.8000 for SC/ST farmers)
Vermi Compost
Maximum subsidy is Rs.5500/-(Rs.7300 for SC/ST farmers)
Purchase of milking - Max. subsidy – Rs.5.0 lakh (Rs.6.67 lakh for SC/ST)
machines
Purchase of dairy Max. subsidy of Rs.3.30 lakh(Rs.4.40 lakh for SC/ST)
processing
38
Sl.
No.
Component
equipment
Establishment
of
dairy
product
transportation
facilities and cold
chain
Cold
storage
facilities for Milk and
Milk products
Establishment
of
private
veterinary
clinics
6
7
8
Unit Cost
Max. subsidy of Rs.6.625 lakh (Rs.8.83 lakh for SC/ST)
Max. subsidy of Rs.8.25 lakh (Rs.11.00 lakh for SC/ST)
Max. subsidy of Rs.65000/- (Rs.86,600 for SC/ST) for mobile
clinic
Max. subsidy of Rs.50000/- (Rs.66600/- for SC/ST) for
stationery clinics
Dairy
Marketing Max. subsidy of Rs.25000/(Rs.33,3000/- for SC/ST)
Outlet/Dairy parlor
9
4. Submission of Utilization certificates for all GSS
As per the Government of India instructions, Utilisation Certificate (UC) has to be submitted
by the banks on receipt of subsidy. The pending status receipt of Utilization certificates is as
below.
Sl.
No.
1
2
3
4
Scheme
DEDS
IDSRR
PVCF(subsidy)
Rural Godown
Pending UCs to be
received
10400
1014
220
1965
Banks are requested check position in their bank and furnish Utilisation Certificate to
NABARD immediately.
5. Status of Government Sponsored schemes: Scheme wise sanction and released
during 2014-15.
(Amount ` lakh)
Sl.
Scheme
Sanctioned
Released
Claims pending for release
from GoI
No.
1
2
3
4
Gramin Bhandaran
Yojana
Solar lighting and
water heating under
JNNSM
Poultry Venture
Capital (Subsidy)
Integrated
Development of
Small Ruminants
and Rabbits
Number
1376.97
Nil
28.286
4.308
Sanction
116.045
110.429
Release
NIL
NIL
Subsidy
293
1926.71
Solar water
Solar
heating
lighting
14.228
9.749
Claims pending for release
from GoI
522.417
1174.519
39
5
Dairy
Entrepreneurship
Development
Scheme
405.429
284.055
121.374
6. Inspite of advising the banks vide our letter Ref.No.NB.KA/DoR / 156 / GSS-DEDS-69
A7/2014-15 dated 11 April 201 NABARD Regional Office is receiving claims directly from
branches instead of Controlling Offices, documents are sent without any forwarding letter. It
is observed that subsidy claimed is less than eligibility, thereby depriving the beneficiaries
their due. Inordinate delay in submission of claims. Banks are requested to advise all the
branches not only the above aspects, but also to submit only one set of documents and not
to send the borrowers to NABARD for enquiry of release of subsidy, without enquiring with
their nodal branches about the status of claim.
The deficiencies which are observed repeatedly in claims submitted by banks to NABARD
under Government subsidy schemes resulting avoidable correspondence and delay in
settlement of claims are listed below :
I. Common deficiencies
i) Original claim not submitted.
ii) Claims not submitted in prescribed format.
iii) Authorised signatory of the Controlling Office has not signed the claim.
iv) Seal of Controlling Office is not affixed.
v) Cuttings and over-writings were not authenticated.
vi) Claims are not being routed through Controlling Office. In case of PCARDBs and
DCCBs, claims are not being routed through the District Manager and the
Karnataka State Cooperative Apex Bank Ltd. Respectively.
vii) Sum of bank loan and margin money is less than TFO.
viii) Subsidy is not calculated on TFO.
ix) Bank loan sanctioned is adjusted with subsidy receivable.
x) The category of the borrower not indicated .
xi) In case of JLGs, the number and category of members not indicated.
xii) The loan repayment period is not indicated.
xiii) The loan repayment period is less than that prescribed in the guidelines.
xiv) Multiple copies of claim forms not to be submitted ; only single copy of claim required.
xv) Utilisation Certificates to be submitted within one week of receipt of subsidy.
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II. Scheme specific Deficiencies :
(a) Animal Husbandry Schemes
i) Number of animals not indicated.
ii) Number of animals/birds is not as per the guidelines.
iii) Margin money is less than that prescribed in the guidelines.
iv) Under DEDS and PVCS, the effective Bank Loan, i.e. bank loan less eligible subsidy is
less than 40% of TFO.
v) The purpose of loan, i.e. Broilers or Layers or Sheep/Goat rearing, Sheep/Goat
Breeding not indicated.
vi) Under IDSRR, bank loan is less than 50% of TFO for Sheep/Goat Breeding units.
(b) Rural Godown & AMIGS Scheme
i) Advance subsidy not being claimed immediately after release of first installment of loan.
ii) Delay in informing completion of the project.
iii) Original affidavit not submitted.
iv) Copy of the land document where the project is located, is not submitted.
v) Abnormal delay in submission of final claim after inspection by JMC.
vi) Under AMIGS Scheme, expenditure statement certified by a Chartered Accountant is
not submitted.
( c)Solar Subsidy Schemes
i) Type of models for Solar Home Lighting Systems (models I to IX) and Solar Water
Heating Systems (FPC or ETC models) not indicated in the claim.
ii) In case a beneficiary has made more than one claim under two different models of
lighting or water heating capacities, separate claim not submitted.
iii) When ‘loan amount excluding subsidy’ is to be written, loan amount including subsidy is
indicated.
iv) Banks to release the loan amount including subsidy to the dealer/supplier after
installation and not after receipt of subsidy from NABARD. On receipt of subsidy from
NABARD, it should be credited to the ‘Subsidy Reserve Fund Account’ of the borrower
and adjusted in the last instalment of the loan amount.
v) Date of sanction is not indicated.
vi) Beneficiary-wise details along with individual margin money not submitted. Under ‘loan
amount excluding capital subsidy’, loan amount including capital subsidy was indicated.
AGENDA 22 : ANY OTHER MATTERS WITH THE PERMISSION OF CHAIR
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